Avianca Brasil files for bankruptcy protection

Avianca Brasil files for bankruptcy protection

Avianca Brasil on December 11, 2018 announced it was filing for bankruptcy protection.

The airline also stated its passengers flights will continue. The
debts from its creditors amounts to almost 493 million reais ($127
million).

The airline issued this statement (translated from Portuguese):

We are here to clarify the news circulated in the press.

Due to the resistance of our aircraft lessors to an amicable
agreement, we had to file a request for judicial recovery to protect
you, our customers and passengers. As the first court decision, we have
had the release of our fleet to comply with all scheduled flights at the
airports where we operate.

That is, our operations WILL NOT BE AFFECTED.

You, our passengers, can have absolute peace of mind in making your
reservations and purchasing your tickets, since all sales and flights
are and will be kept.

We will continue here, serving all customers, flying to all
destinations with the quality and excellence for which we are known and
recognized.

Let’s continue with our mission: make you fall in love. Just come!

Avianca Brasil

More from Reuters:

Avianca Brasil, filed for bankruptcy protection on Monday, saying its
operations had been threatened by potential repossession of aircraft,
which could prevent the carrier from continuing to operate.

The unlisted airline said in its bankruptcy filing that leasing
companies seeking to take back some 30 percent of its all-Airbus fleet
threatened its ability to fly some 77,000 passengers in December.

Avianca said in a statement that the bankruptcy filing resulted from a
failure to reach a “friendly agreement.” It also said its flights would
not be affected.

The aircraft are still under Avianca Brasil’s control for now and it
remains unclear what their fate will be as the carrier is asking a
Brazilian court to allow it to keep the planes for now.

The airline said in the filing it largely blamed high fuel prices and a strong dollar for its troubles.

Avianca Brasil is owned by holding company Synergy Group, which also
controls the better-known Avianca Holdings SA, a publicly listed airline
based in Colombia. Still, the fate of one company is linked to the
other.